Weapons Market Size, Share & Outlook to 2033

Weapons Market Overview

The Weapons Market size was valued at USD 31.01 million in 2024 and is expected to reach USD 41.25 million by 2033, growing at a CAGR of 3.22% from 2025 to 2033.

The global weapons market is experiencing significant growth, driven by escalating geopolitical tensions and increased defense spending. In 2024, global military expenditure reached $2.7 trillion, marking a 9% increase from the previous year. The United States leads the industry, with companies like Lockheed Martin and RTX accounting for approximately 50% of global arms production. Europe is enhancing its defense capabilities in response to regional threats, while China is integrating civilian and military sectors to bolster its defense industry. Russia has intensified its arms production, benefiting from state support and Chinese inputs, though economic sustainability remains a concern. The competition for strategic resources, such as rare earth elements, is intensifying, with China dominating this sector. The global defense industry is poised for continued transformation and growth.

Key Findings

Top Driver Reason: Escalating geopolitical tensions and increased defense spending are primary drivers of the weapons market's growth.

Top Country/Region: The United States maintains a dominant position, leading in both production and export of weapons.

Top Segment: The military sector remains the largest segment, with significant investments in advanced weaponry and defense systems.

Weapons Market Trends

The weapons market is undergoing rapid evolution, influenced by technological advancements and shifting defense strategies. In 2024, the global market for small arms and light weapons was valued at approximately $10.4 billion, with projections indicating growth to over $18.5 billion by 2032. The demand for light weapons, including portable anti-aircraft and anti-tank systems, is increasing due to their effectiveness in asymmetric warfare. The automatic weapons market is also expanding, with North America accounting for about 40% of the global market in 2024. The integration of AI and autonomous systems is transforming modern warfare, leading to the development of uncrewed fighter jets and advanced drone technologies. European defense start-ups are making significant strides in AI-assisted combat aircraft, with expectations of operational deployment within a few years. The focus on directed energy weapons, such as laser systems, is growing, with the market projected to experience substantial growth in the coming years. These trends underscore the dynamic nature of the weapons market and its responsiveness to emerging defense needs.

Weapons Market Dynamics

DRIVER

Rising geopolitical tensions and increased defense budgets

The global landscape is marked by heightened geopolitical tensions, prompting nations to bolster their defense capabilities. In 2024, global military expenditure reached $2.7 trillion, reflecting a 9% increase from the previous year. The United States, leading in defense spending, allocated significant resources to modernize its military infrastructure. European countries are also enhancing their defense budgets to address regional threats. This surge in defense spending is fueling the demand for advanced weaponry and defense systems, driving growth in the weapons market.

RESTRAINT

Supply chain disruptions and production bottlenecks

The weapons industry faces challenges related to supply chain disruptions and production bottlenecks. For instance, the U.S. defense sector has encountered difficulties in scaling up the production of critical systems like the Patriot missiles. These challenges are exacerbated by dependencies on specific materials and components, leading to delays and increased costs. Addressing these issues requires strategic investments in supply chain resilience and diversification.

OPPORTUNITY

Advancements in AI and autonomous weapon systems

The integration of artificial intelligence (AI) and autonomous technologies presents significant opportunities for the weapons market. European defense start-ups are pioneering AI-assisted combat aircraft, with successful test flights demonstrating the potential of these technologies. The development of autonomous drones and AI-driven defense systems is expected to revolutionize modern warfare, offering enhanced precision and operational efficiency. Investments in these areas are likely to yield substantial returns and reshape the future of defense strategies.

CHALLENGE

Ethical concerns and regulatory hurdles

The deployment of advanced weaponry, particularly autonomous systems and AI-driven technologies, raises ethical concerns and regulatory challenges. Issues related to accountability, decision-making in combat scenarios, and compliance with international laws are at the forefront of discussions. Balancing technological advancements with ethical considerations is crucial to ensure responsible development and deployment of modern weapons. Addressing these challenges requires collaborative efforts among governments, industry stakeholders, and international bodies.

Weapons Market Segmentation

By Type

Defense: The defense sector remains the primary consumer of weapons, with significant investments in modernizing military capabilities. In 2024, the global defense expenditure reached $2.7 trillion, reflecting a 9% increase from the previous year. This surge in spending underscores the emphasis on strengthening national security and military readiness.
Law Enforcement: Law enforcement agencies are increasingly adopting advanced weaponry to address evolving security challenges. The demand for non-lethal weapons, such as tasers and rubber bullets, is rising, driven by the need for effective crowd control and minimal collateral damage. In 2024, the market for non-lethal weapons was valued at approximately $6.3 billion.
Security: Private security firms are investing in modern weapons to enhance their operational capabilities. The global private security market is expanding, with projections indicating a value of $240 billion by 2025. This growth is fueled by increasing demand for security services in both public and private sectors.
Hunting: The hunting segment continues to be a significant market for firearms, particularly in regions with strong hunting traditions. In the United States, approximately 15 million hunting licenses were issued in 2024, reflecting the sustained interest in hunting activities. This segment contributes to the steady demand for rifles and shotguns.
Military: The military sector is at the forefront of adopting cutting-edge weaponry, including AI-driven systems and autonomous platforms. Investments in next-generation weapons technology are increasing, with the market projected to reach $38.1 billion by 2034. These advancements aim to enhance combat effectiveness and operational efficiency.
Government: Government agencies are procuring weapons for various purposes, including border security and counter-terrorism operations. The allocation of funds for such initiatives is evident in the increased defense budgets across multiple countries. For instance, the U.S. defense budget for 2025 is set at $923.3 billion, marking a 4.1% increase from the previous year.
Civil Protection: Civil protection agencies are equipping themselves with specialized weapons to handle emergencies and disasters. The focus is on acquiring equipment that ensures public safety while minimizing harm. Investments in this segment are growing, reflecting the importance of preparedness in crisis situations.

By Application

Firearms: The global firearms market is robust, with the United States alone recording approximately 16.1 million firearm sales in 2024. This figure represents a 3.4% decrease from the previous year, indicating a slight decline yet maintaining a substantial volume. The demand for firearms spans various sectors, including defense, law enforcement, and civilian use.
Ammunition: The ammunition market is experiencing steady growth, driven by the consistent demand from military and civilian sectors. Innovations in ammunition technology, such as enhanced precision and lethality, are contributing to market expansion. In 2024, the global ammunition market was valued at approximately $20 billion.
Explosives: The explosives segment is integral to military operations, with applications ranging from demolition to combat scenarios. Advancements in explosive materials and delivery systems are enhancing effectiveness and safety. The global explosives market is projected to reach $12 billion by 2025.
Armored Vehicles: Armored vehicles are essential for troop protection and mobility in conflict zones. The demand for such vehicles is increasing, particularly in regions experiencing heightened security threats. The global armored vehicles market is expected to grow to $30 billion by 2026.
Non-lethal Weapons: Non-lethal weapons are gaining prominence for their ability to incapacitate targets without causing permanent harm. Law enforcement and military agencies are adopting these weapons for crowd control and peacekeeping missions. The non-lethal weapons market was valued at approximately $6.3 billion in 2024.

Weapons Market Regional Outlook

North America

North America, particularly the United States, dominates the weapons market, driven by substantial defense budgets and advanced technological capabilities. In 2024, the U.S. defense budget was approximately $923.3 billion, reflecting a 4.1% increase from the previous year. The U.S. also leads in arms exports, accounting for nearly 41% of global arms exports, with key markets including Saudi Arabia, Japan, and Australia. Canada is also witnessing moderate growth in its defense sector, allocating CAD $26.5 billion in defense spending for 2024. Investment in research and development of autonomous systems, next-gen firearms, and missile defense continues to fuel North American market growth.

Europe

Europe is rapidly expanding its weapons market in response to regional threats and the ongoing Russia-Ukraine conflict. The collective military expenditure across NATO European countries rose to over €380 billion in 2024. Germany increased its defense budget by 13.7% to reach €72 billion, while France allocated €51.5 billion, up 7.5% from the previous year. The European Union launched a €8 billion European Defence Fund, enhancing collaboration on defense R&D. Nations like Poland, with an increase of 33% in military spending, are heavily investing in tanks, aircraft, and artillery. The rise in cross-border defense initiatives and local production is propelling the European weapons industry.

Asia-Pacific

The Asia-Pacific region is experiencing a surge in weapons market growth, led by China, India, Japan, and South Korea. China's defense expenditure surpassed ¥1.6 trillion in 2024, a 7.2% increase, as the country pushes for technological superiority and domestic military-industrial expansion. India allocated ₹6.21 lakh crore for defense, a 12% hike, enhancing procurement of indigenous weapons under the “Make in India” initiative. South Korea's military spending grew to ₩57 trillion, with a focus on missile systems and AI-based technologies. Japan, with a 16.5% budget increase to ¥7.95 trillion, is investing in long-range missiles and fighter aircraft. Regional tensions are catalyzing robust market developments.

Middle East & Africa

The Middle East continues to be a high-spending region on weapons, with Saudi Arabia and the UAE leading. Saudi Arabia’s defense budget reached SAR 256 billion in 2024, with large-scale investments in air defense systems and armored vehicles. The UAE allocated AED 55 billion, increasing its focus on autonomous defense solutions and smart weapon systems. Turkey, a rising regional player, exported over $5.5 billion worth of defense products in 2024, led by drones and small arms. In Africa, Nigeria, Egypt, and Algeria are increasing purchases of small arms and surveillance systems, with Egypt allocating over $4 billion toward defense modernization.

List of Top Weapons Market Companies

Lockheed Martin (USA)
Boeing (USA)
Raytheon Technologies (USA)
Northrop Grumman (USA)
General Dynamics (USA)
BAE Systems (UK)
Thales Group (France)
Airbus (Europe)
Israel Aerospace Industries (Israel)
Hanwha Aerospace (South Korea)

Top Two Companies with Highest Market Share

Lockheed Martin (USA): Lockheed Martin remains the top weapons manufacturer globally. In 2024, the company delivered over 150 F-35 fighter jets and expanded its missile and fire control segment by 9%. It also secured more than $40 billion in defense contracts, including for hypersonic weapon development and space-based defense systems. Its Skunk Works division is actively engaged in AI-assisted drone technology and stealth aircraft innovation.
Raytheon Technologies (USA): Raytheon is a major defense contractor known for its advanced missile systems, including the Patriot and Tomahawk platforms. In 2024, Raytheon completed over 1,200 missile system deliveries and announced the development of next-gen interceptor technologies. The company also invested $2.5 billion into R&D for directed energy weapons, sensor fusion, and radar technology, solidifying its leadership in defense innovation.

Investment Analysis and Opportunities

The global weapons market is witnessing unprecedented levels of investment, as governments and private defense firms escalate procurement and development activities. In 2024, total global defense procurement contracts exceeded $1.2 trillion, with a 6% year-on-year increase. Much of this funding is directed toward advanced weapons systems, cyber defense, and autonomous platforms. Private equity and venture capital interest in defense startups surged in 2024, with $15.6 billion invested in AI-enabled weapons, robotics, and next-generation materials. Notably, Europe’s EDF (European Defence Fund) earmarked €8 billion for collaborative cross-border projects, while the U.S. Department of Defense allocated $135 billion for innovation in unmanned combat systems, quantum computing, and hypersonic missiles. In the Asia-Pacific, India's ""Make in India"" defense program attracted over $4 billion in foreign direct investment in 2024, resulting in joint ventures with Israel, Russia, and France. Similarly, South Korea's defense industry saw a 12% uptick in private investment, focused on missile defense and battlefield AI. Significant growth opportunities lie in the development of directed energy weapons and electromagnetic railguns, with DARPA and the U.S. Navy investing heavily in this space. The non-lethal weapons segment also presents a fertile ground for investment, especially in civil unrest zones and urban warfare scenarios. Investment in simulation-based training and augmented reality for military use is also scaling, with a forecasted market value of $8 billion by 2026. Governments are further incentivizing domestic production to reduce reliance on imports, thereby offering tax benefits and relaxed regulations. This policy shift, particularly in India, Brazil, and Poland, has made defense manufacturing an attractive investment destination.

New Product Development

Innovation is reshaping the global weapons market at an accelerated pace. In 2024, over 750 new military products were introduced globally, ranging from AI-integrated combat systems to smart ammunition. One of the most groundbreaking launches was Lockheed Martin's AI-powered drone swarm system, capable of autonomous mission execution in GPS-denied environments. The system completed successful trials in June 2024 and is expected to be operational by late 2025. Similarly, Israel Aerospace Industries developed a multi-purpose loitering munition capable of engaging both fixed and mobile targets with real-time human oversight. Raytheon unveiled a next-gen hypersonic glide vehicle designed for rapid deployment and high maneuverability. This vehicle underwent testing at speeds exceeding Mach 6 and is projected to enter active service by 2026. In the directed energy space, Northrop Grumman introduced a 150-kilowatt laser system for integration into land and naval platforms. BAE Systems made strides in wearable battlefield technologies, launching the BLADE (Battlefield Lightweight Augmented Display Equipment), enhancing soldier situational awareness through AR-powered helmet displays. Meanwhile, Airbus expanded into land-based weaponry with its new modular turret systems for armored vehicles, capable of 360° threat detection and autonomous target acquisition. Thales Group also pioneered quantum-resistant communication systems for secure battlefield operations, ensuring resistance to electronic warfare attacks. The surge in AI and autonomy-focused innovation is redefining what modern combat looks like, blending technology with lethality and efficiency.

Five Recent Developments

Lockheed Martin completed delivery of the 1,000th F-35 aircraft in April 2024, marking a milestone in advanced fighter jet production.
Raytheon Technologies secured a $4.6 billion contract for Patriot missile upgrades with NATO member states, boosting interoperability and defense readiness.
BAE Systems introduced a new class of amphibious combat vehicles for the U.S. Marine Corps, capable of transitioning seamlessly from sea to land.
Israel Aerospace Industries launched a solar-powered high-altitude surveillance drone with 45-hour continuous flight capacity in November 2023.
Hanwha Aerospace finalized a $3.2 billion deal with Australia to supply K9 self-propelled howitzers and combat-ready armored vehicles.

Report Coverage of Weapons Market

This report offers comprehensive coverage of the global weapons market, encompassing production, innovation, segmentation, regional outlook, and competitive landscape. The market spans across various sectors such as firearms, ammunition, explosives, non-lethal systems, and armored vehicles. With a focus on both conventional and technologically advanced weapon systems, the report includes analysis of key market drivers, restraints, challenges, and growth opportunities. Key segmentation details include type (military, law enforcement, security, civil protection) and application (firearms, ammunition, explosives, non-lethal weapons, armored vehicles). Each segment is analyzed with statistical backing and contextual insights to understand its contribution to the overall market. The regional outlook covers North America, Europe, Asia-Pacific, and Middle East & Africa, providing figures on defense budgets, procurement patterns, and industrial collaborations. Market dynamics are elaborated upon with data-supported analysis of drivers like geopolitical tensions, restraints such as supply chain disruptions, and challenges including ethical and regulatory concerns. The report features profiles of leading manufacturers, including Lockheed Martin, Raytheon, Boeing, and others, with emphasis on product launches, investment trends, and innovation. It also delves into new product developments and recent strategic moves shaping the global weapons landscape. Additionally, the report includes in-depth investment analysis and highlights emerging opportunities in AI, autonomous systems, and non-lethal technology. It serves as a detailed reference for policymakers, industry stakeholders, investors, and analysts seeking granular data and forward-looking insights into the weapons market.